India's annual defence production hit a record Rs 1.78 lakh crore in FY 2025-26, a 15.6% year-on-year increase. Defence Minister Rajnath Singh credited PM Modi's leadership for the milestone, driven by indigenous manufacturing and private sector growth.
India's annual defence production reached an all-time high of Rs 1.78 lakh crore in the financial year 2025-26, registering a 15.6 per cent increase over the previous year and a 110 per cent rise since 2020-21, the Ministry of Defence said on Wednesday. Higher indigenous manufacturing, greater private sector participation, and rising defence exports all contributed to the growth.
Defence Minister Rajnath Singh on Wednesday welcomed the achievement and credited Prime Minister Narendra Modi's leadership and the efforts of stakeholders across the defence sector for the milestone. In a post on X, Singh said, "Under the inspiring leadership of PM Shri @narendramodi, India's defence production is reaching new heights every year. I am delighted to inform everyone that India's annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26."
Record-Breaking Growth in Numbers
According to the Ministry of Defence, the latest figure marks a 15.6 per cent increase over the previous financial year's output of Rs 1.54 lakh crore. It also represents a 110 per cent rise since FY 2020-21, when defence production stood at Rs 84,643 crore. Indigenous defence production has increased nearly fourfold from Rs 43,746 crore recorded in FY 2013-14.
Public and Private Sector Contributions
MoD said Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for about 76 per cent of the total production during FY 2025-26, while the private sector contributed 24 per cent. The private sector's share rose from 22 per cent in FY 2024-25 and reached an all-time high of around Rs 42,000 crore, reflecting its growing role in the country's defence manufacturing ecosystem.
Boost in Defence Exports
The growth in domestic defence production has also contributed to a record performance in defence exports. India recorded defence exports worth Rs 38,424 crore during FY 2025-26, the highest ever, MoD added.
'Aatmanirbhar Bharat' Initiative Driving Growth
The Ministry further stated that the achievement reflects the growing momentum of the government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative.
Defence Minister on Sustained Growth
Highlighting the rapid expansion of the sector, Singh said, "This milestone represents an impressive 15.6% growth over the previous fiscal year's output of Rs 1.54 lakh crore and a staggering 110% increase since FY 2020-21, when the figure stood at Rs 84,643 crore. Indigenous defence production has increased nearly fourfold from Rs 43,746 crore in FY 2013-14."
The Defence Minister also credited the Department of Defence Production and industry stakeholders, both public and private, for the sustained rise in output. "The remarkable rise in India's defence production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders. This upward trajectory is a clear indicator of the country's expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead," the Defence Minister added. (ANI)
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